MICHELLE SINGLETARY: What to do when identity thieves strike

Saturday

Dec 28, 2013 at 12:01 AM

WASHINGTON | The data breach at Target has a lot of people really worried.Their concern centers on information on about 40 million credit and debit card accounts, which were illegally accessed between Nov. 27 and Dec. 15. Here are some of the readers’ questions.

WASHINGTON | The data breach at Target has a lot of people really worried.Their concern centers on information on about 40 million credit and debit card accounts, which were illegally accessed between Nov. 27 and Dec. 15. Here are some of the readers’ questions:

Q: How can the information about one credit card lead to identity theft?

A: The Federal Trade Commission says identity theft is the No. 1 complaint it gets from consumers every year.There are many forms of identity theft. If identity thieves have your personal information, they can access your bank account, buy a car, open utility or mobile phone accounts, get medical treatment using your health insurance or commit a crime. Identity thieves can use stolen debit or credit card information to create counterfeit cards or use the card information to make online purchases. More than 12 million people were victims of identity fraud in the United States in 2012, and criminals stole nearly $21 billion, according to Javelin Strategy and Research, which tracks identity fraud trends. Here’s something to consider. Javelin found that consumers who had their Social Security numbers compromised in a data breach were five times more likely to be fraud victims.We become more aware of identity theft when big breaches are disclosed. But many people make it easy for the theft of their information by identity thieves. When I do seminars on identity theft, I ask participants: “What’s in your wallet?” It never ceases to amaze me how much personal financial information people carry around. One time a mother pulled out of her purse her children’s birth certificates, Social Security cards and passports. She had registered the kids at a new school a few months earlier and had forgotten to put the information back in her file folder at home. Many people had laminated Social Security cards in their wallets. Others had old mortgage bills with them. Information about your lenders can be used in security checks to verify your identity.

Q: It is time for the credit card companies to come up with something new to protect their customers. Short of millions of customers canceling their credit cards, what can we do to protect ourselves? It could be months before the crooks use anyone’s information, so checking now for activity could miss it.A: In its most recent identity theft report, Javelin said one in four people notified of a breach ended up becoming a fraud victim. So if you shopped at Target during the period its system was compromised, you need to take steps to protect yourself. If you see any unauthorized activity, contact your credit card company or your financial institution. In addition, contact the FTC at 877-438-4338. You can find information about other steps you can take at www.consumer.gov/idtheft.Most importantly, monitor your credit reports from all three major credit bureaus — Equifax, TransUnion and Experian. You can get free copies of your credit reports from www.annualcreditreport.com or by calling 877-322-8228. You are entitled to one free report from each bureau every 12 months. Additionally, identity theft victims are entitled to a free credit report from each of the credit bureaus. If you do become a victim or are worried about your information being stolen, you can place extended fraud alerts or credit freezes on your credit files. To find out more on how each works, go to www.ftc.gov and click on the link for “Tips & Advice.” Under the consumer section, you will find an identity fraud link, which includes information on placing both extended fraud alerts and credit freezes on your credit reports.